The fall in Bitcoin's price below $90,000 caused market panic, impacting 12% of addresses with unrealized losses, the highest since October 2024.
Market Reaction to Price Drop
Bitcoin's recent price drop below $90,000 has led to panic among traders and financial investors. The unrealized loss percentage reached 12%, the highest since October 2024. If holders sell their assets at the current market price, they will incur losses, signaling a change in market sentiment and raising fears of further declines.
Regulatory Pressure and Its Effects
The decline in Bitcoin's price occurs amid increasing regulatory pressure. Bitcoin's sentiment index dropped to its lowest since January 2025 at 14.7%. Recently, the Wyoming state legislature rejected a bill allowing state funds to invest in Bitcoin, worsening concerns about stricter regulations.
Technical Analysis and Price Forecast
According to analysis from Ali Charts, Bitcoin has broken through a key parallel channel, indicating a potential trend change. Bitcoin's ability to rise above $92,500 is crucial, and failure to do so may lead to a drop to $81,000. A successful breakout above $92,500 would restore bullish momentum, potentially driving prices to $95,000 or higher.
Bitcoin's price drop is accompanied by both market and regulatory uncertainties. Future price movements depend on its ability to break key resistance levels and market adaptation to new regulatory environments.
